Roberto Bellini became the CEO of BELLUS Health Inc. ( TSE:BLU ) in 2010. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Roberto Bellini's Compensation Compare With Similar Sized Companies?
Our data indicates that BELLUS Health Inc. is worth CA$215m, and total annual CEO compensation is CA$1.0m. (This is based on the year to December 2018). Notably, that's an increase of 28% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at CA$364k. We examined companies with market caps from CA$134m to CA$537m, and discovered that the median CEO total compensation of that group was CA$828k.
That means Roberto Bellini receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at BELLUS Health has changed from year to year.
Is BELLUS Health Inc. Growing?
On average over the last three years, BELLUS Health Inc. has shrunk earnings per share by 84% each year (measured with a line of best fit). Its revenue is down -79% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings .
Has BELLUS Health Inc. Been A Good Investment?
Given the total loss of 21% over three years, many shareholders in BELLUS Health Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Remuneration for Roberto Bellini is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing EPS, and shareholder returns have been disappointing. This doesn't look great when you consider CEO remuneration is up on last year. Few would argue that it's wise for the company to pay any more, before returns improve. So you may want to check if insiders are buying BELLUS Health shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.